PG&E calls criminal charges against agency 'unwarranted,' says it didn't break the law

By Katie Nelson knelson@mercurynews.com

Posted:
07/31/2014 09:42:16 AM PDT

Updated:
07/31/2014 09:42:59 AM PDT

SAN FRANCISCO -- Just a day after PG&E was indicted by a federal grand jury on criminal charges, among them obstruction of justice, the utility released a statement calling the charges "unwarranted."

In a statement posted on PG&E's website, the company calls the 2010 gas pipeline blast in San Bruno that killed eight and injured 66 people a "tragic accident" and said it has apologized and "taken accountability" for what occurred.

The statement immediately dives in to address the obstruction of justice charges filed against the agency Tuesday, saying PG&E responded quickly to hundreds of questions and requests for information and documents from the National Transportation Safety Board.

It even pinpoints what is says led to the obstruction charge -- a cover sheet submitted by PG&E that was not correctly matched to an internal engineering document. However, PG&E said it quickly corrected the mistake and that the NTSB reflected the change online, which can currently be seen on the government agency's website.

"We still do not believe that PG&E employees intentionally violated the federal Pipeline Safety Act, and that, even where mistakes were made, employees were acting in good faith to provide customers with safe and reliable energy," the statement said.

"We have worked hard to do the right thing for victims, their families and the community, and we will continue to do so," the statement goes on to read. "We are absolutely committed to re-earning the trust of all of the people we are fortunate to serve every day."

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In total, the U.S. Department of Justice filed 27 charges accusing PG&E of willfully violating the pipeline safety act, and one charge of obstructing an investigation of the explosion by the NTSB, with prosecutors alleging the company lied to federal investigators about the policies it was using to fix its pipeline system. The new indictment replaces one filed April 1 that charged PG&E with 12 felony counts.

The charges significantly increase the financial penalty the company faces, with PG&E now subject to a fine of up to $1.1 billion. Prosecutors are also charging the company with a crime that purportedly took place after the explosion; up to now, all of the charges against the company targeted actions it took before the explosion.

PG&E is set to appear in court for arraignment Aug. 18.

Staff writer George Avalos contributed to this report. Contact Katie Nelson at 408-920-5006 and follow her at Twitter.com/katienelson210.